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Benzinga
116 days

China Accounts Smaller Share In Nike Sales Compared To Pre-Pandemic Levels, But Tariff Pressure Still Persists: Analyst

1. BofA Securities maintains Buy rating on NKE, lowers price forecast to $80. 2. Nike shares fell 12% since April, lagging behind S&P 500's 5% decline. 3. Analysts believe tariff exposure is manageable and already priced into NKE. 4. Inventory streamlining expected to enhance product innovation and revenue in FY26. 5. China's reduced profit contribution impacts NKE, showing long-term performance challenges.

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FAQ

Why Neutral?

Although the price target was reduced, Buy rating indicates confidence. Past forecasts adjusted similarly without major drops to price, showing resilience.

How important is it?

Tariff effects and production strategies are critical in the current market context for NKE.

Why Short Term?

The adjustments reflect immediate responses to tariff impacts, but long-term recovery potential remains.

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